Crypto Thefts Surge 130% to $2.1 Billion in 2025 First Half

Crypto thefts in the first half of 2025 reached unprecedented levels, with a staggering $2.1 billion in losses reported. The majority of these thefts were driven by private key compromises and front-end exploits, which accounted for more than 80% of stolen funds across 75 incidents. These highly targeted attacks often involve social engineering and infrastructure vulnerabilities, making them particularly damaging, with an average loss of nearly $30 million per breach. The largest single incident was a $1.5 billion hack on a Dubai-based exchange, attributed to North Korean state actors, which contributed to nearly 70% of total losses. Geopolitical tensions have also entered the crypto security space, with groups like the pro-Israel hacker collective targeting exchanges in other regions.

In the DeFi sector, Resupply lost $9.6 million in a price manipulation exploit involving synthetic assets. The attack involved inflating the share price in the ResupplyPair contract to borrow funds using minimal collateral. The funds were then converted to Ethereum and distributed across two addresses. Resupply paused the affected contracts and plans to release a full post-mortem after completing its investigation. This incident highlights the increasing use of social engineering tactics in crypto thefts, as seen in a $2 million exploit in 2024 linked to a former employee who used insider access to carry out the breach.

Meanwhile, British national Kai West was indicted in the US for selling stolen data through cybercrime forums, raking in millions in Bitcoin and Monero. West is accused of conspiring with a cybercriminal group to hack into and steal data from over 40 companies. The charges stem in part from an undercover law enforcement operation where an agent purchased stolen credentials from West for $250 in Bitcoin. West was reportedly responsible for at least 158 threads advertising stolen data on the BreachForums platform, with 41 of those involving companies based in the United States. He was arrested in France earlier this year, and US authorities are now seeking his extradition.

To address the mounting threat of crypto thefts, a comprehensive overhaul of crypto security practices is needed. This includes implementing multifactor authentication, using cold storage for funds, conducting regular audits, and enhancing detection of insider threats and social engineering attempts. More broadly, there is a need for international cooperation between law enforcement agencies, financial intelligence units, and blockchain analytics firms. The first half of 2025 should serve as a wake-up call for the industry to strengthen its security measures and prevent further losses.